Product Code: GDDF0607MR
As one of the leading importers of defense equipment, India's defense expenditure is anticipated to register a CAGR of 9.11% over the forecast period 2020-2024. The growth in the Indian defense expenditure is mainly fueled by the need to secure its strategic interests while facing the rise of China. India shares a 3,323 km long land border with Pakistan, and an even longer 3,488 km border with People's Republic of China (PRC), and has territorial disputes with both countries over the ownership of the Northern State of Kashmir and the North Eastern State of Arunachal Pradesh.
The robust growth in Indian defense expenditure can thus be attributed to the precarious geo-strategic scenario and myriad of strategic challenges that continue to erode India's strategic advantage over its adversaries. These factors have played a crucial role in spurring growth in the Indian base defense expenditure (excluding pensions) over the historic period, which increased from US$33.8 billion in 2015 to US$45.4 billion in 2019, reflecting a CAGR of 7.70% over the historic period. Over the forecast period the country's defense expenditure is forecasted to increase from US$68.4 billion in 2020 to US$104 billion in 2024, exhibiting a CAGR of 11.05% over the analysis period.
Between 2014-2018, India was ranked as the second largest importer of defense equipment, behind only Saudi Arabia. The acquisition of defense equipment is mainly driven by the need to gain a significant technological advantage over Pakistan, while retaining a level of strategic parity with respect to China. Against this backdrop, India's defense capital expenditure is valued at US$14.7 billion in 2019 and is anticipated to rise from US$16.4 billion in 2020 to US$25.9 billion in 2024, exhibiting a CAGR of 12.02% over the forecast period.
Indian homeland security expenditure expected to reach US$19.2 billion by 2024. India faces a high level of threat from terrorist attacks and in the country has been compelled to heavily invest in counter-terrorist measures. Over the period 2015-2019, the country invested a total of US$60.9 billion in homeland security, which is expected to increase to US$84.5 billion over the forecast period. Due to the nature of the security threats facing India, the main opportunities for growth in homeland security are expected to be in border security, police force modernization, aviation, mass transportation, and maritime security markets.
The report "The Indian Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024" provides readers with detailed analysis of both historic and forecast defense industry values, factors influencing demand, the challenges faced by industry participants, analysis of industry leading companies, and key news.
This report offers detailed analysis of Indian defense industry with market size forecasts covering the next five years. This report will also analyze factors that influence demand for the industry, key market trends, and challenges faced by industry participants.
In particular, the report "The Indian Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024" provides an in-depth analysis of the following -
- Indian defense industry market size and drivers: detailed analysis of Indian defense industry during 2020-2024, including highlights of the demand drivers and growth stimulators for the industry. It also provides a snapshot of the country's expenditure and modernization patterns
- Budget allocation and key challenges: insights into procurement schedules formulated within the country and a breakdown of the defense budget. It also details the key challenges faced by defense market participants within the country
- Porter's Five Force analysis of Indian defense industry: analysis of the market characteristics by determining the bargaining power of suppliers, bargaining power of buyers, threat of substitution, intensity of rivalry, and barriers to entry
- Import and Export Dynamics: analysis of prevalent trends in the country's imports and exports over the last five years
- Market opportunities: details of the top five defense investment opportunities over the next 10 years
- Competitive landscape and strategic insights: analysis of the competitive landscape of Indian defense industry. It provides an overview of key players, together with insights such as key alliances, strategic initiatives, and a brief financial analysis
- The growth in the Indian defense expenditure is mainly fueled by the need to secure its strategic interests while facing the rise of China. India shares a 3,323 km long land border with Pakistan, and an even longer 3,488 km border with People's Republic of China (PRC), and has territorial disputes with both countries over the ownership of the Northern State of Kashmir and the North Eastern State of Arunachal Pradesh. Pakistan has rejected the line of control (LoC) becoming an actual demarcated border between India and Pakistan, and China refuses to accept the McMahon Line as the demarcated border between the two countries and continues to stake claim over Arunachal Pradesh, which it deems to be an extension of the Tibetan Plateau. Indian strategic concerns mainly revolve around the containment of the expanding Chinese influence in South Asia and the Indian Ocean Region (IOR), while preventing both China and Pakistan from forcefully changing the status-quo along the Indian frontiers. The robust growth in Indian defense expenditure can thus be attributed to the precarious geo-strategic scenario and myriad of strategic challenges that continue to erode India's strategic advantage over its adversaries. These factors have played a crucial role in spurring growth in the Indian base defense expenditure (excluding pensions) over the historic period, which increased from US$33.8 billion in 2015 to US$45.4 billion in 2019, reflecting a CAGR of 7.70% over the historic period.
- Historic data shows that the average capital expenditure allocation of the total Indian defense budget was 32.2%, and the allocation is expected to decline marginally during the forecast period to an average of 32.1%.
- The Indian MoD is expected to invest in conventional submarines, multi-role aircrafts, corvettes, tanks, artillery guns, Multi Barrel Rocket Launchers (MBRL), helicopters, nuclear submarines, surface-to-air missiles, Unmanned Aerial Vehicles (UAV) and frigates among others.
Reasons to buy
- This report will give the user confidence to make the correct business decisions based on a detailed analysis of Indian defense industry market trends for the coming five years
- The market opportunity section will inform the user about the various military requirements that are expected to generate revenues during the forecast period. The description includes technical specifications, recent orders, and the expected investment pattern by the country during the forecast period
- Detailed profiles of the top domestic and foreign defense manufacturers with information about their products, alliances, recent contract wins, and financial analysis wherever available. This will provide the user with a total competitive landscape of the sector
- A deep qualitative analysis of Indian defense industry covering sections including demand drivers, Porter's Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts
Table of Contents
LIST OF FIGURES
LIST OF TABLES
- 1.1. What is this Report About?
- 1.2. Definitions
- 1.3. Summary Methodology
- 1.4. About GlobalData
2. Executive Summary
3. Market Attractiveness and Emerging Opportunities
- 3.1. Current Market Scenario
- 3.2. Current Market Scenario
- 3.3. Defense Market Size Historical and Forecast
- 3.4. Analysis of Defense Budget Allocation
- 3.5. Homeland Security (Police) Market Size and Forecast
- 3.6. Benchmarking with Key Global Markets
- 3.7. Market Opportunities: Key Trends and Growth Stimulators
4. Defense Procurement Market Dynamics
- 4.1. Import Market Dynamics
- 4.2. Export Market Dynamics
5. Industry Dynamics
- 5.1. Five Forces Analysis
6. Market Entry Strategy
- 6.1. Market Regulation
- 6.2. Market Entry Route
- 6.3. Key Challenges
7. Competitive Landscape and Strategic Insights
- 7.1. Competitive Landscape Overview
- 7.2. Key Foreign Companies
- 7.3. Key Public Sector Companies
- 7.4. Key Private Sector Companies
8. Business Environment and Country Risk
- 8.1. Economic Performance
- 9.1. About GlobalData
- 9.2. Disclaimer